One In the News article titled "Fed to Expand Bond-Purchase Program" suggests that interest rates
A. Decrease aggregate supply.
B. Will rise to encourage less borrowing for home mortgages and other loans.
C. Will fall to encourage more borrowing for home mortgages and other loans.
D. Will rise to encourage more savings.
Answer: C
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Mass production integrates
a. continuous flow and interchangeable parts. b. economies of scale and scientific management. c. the McCallum principles. d. the Taylor premises.
A development strategy of import substitution eliminates the gains from specialization and comparative advantage in production among countries
Indicate whether the statement is true or false
The rational expectations hypothesis suggests that
A) people are creatures of habit and tend not to change their economic behavior in the short run. B) people are rational if they make forecasts about economic activity. C) people use all available information to make forecasts about future economic activity and adjust their behavior to these forecasts. D) people use all available information to make forecasts about future economic activity but often fail to adjust their behavior to these forecasts.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower